fiscal cliff

The dollar fell against most of its biggest peers as Senate Majority Leader Harry Reid said he’s hopeful a last-minute U.S. deficit-reduction deal will be reached to protect all but top earners from a tax increase

Treasuries advanced for a third day amid speculation U.S. lawmakers will fail to reach agreement in time to avoid the so-called fiscal cliff of more than $600 billion in spending cuts and tax increases

U.S. stocks retreated for a fourth day, while Treasuries gained, as Senate Majority Leader Harry Reid said nothing is happening in budget talks and the nation appears to be headed toward the fiscal cliff.

The dollar strengthened from almost an eight-month low against the euro after Senate Majority Leader Harry Reid said the U.S. may fall off the so-called fiscal cliff that threatens the nation with recession.

U.S. stocks fell, sending the Standard & Poor’s 500 Index lower for a third day, as President Barack Obama and Congress prepared to resume budget talks and retailers slumped after the Christmas holiday.